Unbroken China

The global financial crisis had an indirect but significant impact on Chinese banks, which have had to manage the risks linked to the country’s large credit expansion in 2009. Financial institutions have also learnt useful lessons from the collapse of Lehman Brothers.

The Chinese banking industry has developed quickly; many years of ongoing reform have resulted in significantly enhanced risk management and continuous improvements in operating performance. The current financial crisis, however, has greatly challenged and brought enormous pressure on the industry – although direct losses were limited, the indirect influences have been tremendous. The result is a more mature banking sector with greater market consciousness and risk awareness integrated in its